Mississippi – Factors that Affect Auto Insurance Rates

By Hayden KruegerPublished: Wednesday, November 4th, 2009

The state of Mississippi works on the Tort system of rules. According to this system, in case of every accident, a person has to be found responsible for the accident. It is then the duty of this person to pay for all the damages caused during the accident. To ensure that every person is able to pay for damages caused during the accident, the state of Mississippi has made auto insurance mandatory. This is known as financial responsibility.

Every state that has made auto insurance mandatory has to also fix a minimum liability. This is the minimum sum for which every driver in the state of Mississippi has to be insured for. The minimum liability is of the form 25/50/25. This stands for twenty five thousand dollars for bodily injury per person and fifty thousand dollars in total for bodily injury covering two people. Property damage coverage for twenty five thousand dollars is also made mandatory. Property damage covers all the damages including repair and replacement of the other driver’s car. It will also cover all the damages caused to any buildings, lamp posts or even fences. Bodily injury covers all the medical costs incurred by the other driver.

However, the sums mentioned are very small, in fact, the minimum sums. Any accident will need a lot more insurance coverage to cover all the costs. If you are planning to buy auto insurance you will need to consider the different factors that will help determine the auto insurance rates.

The factors that determine insurance rates can be divided into two main parts. They are factors you can change or alter and factors you cannot.

This first among factors that can be changed is your age. Age plays a huge role in your insurance rates. Statistically, drivers below twenty five years of age are very rash drivers and are hence high risk. Drivers above fifty and below sixty five are the safest drivers and they get the lowest rates. Gender plays a big role too as women are known to be safer drivers than men. People who are married are much safer drivers than people who are not married say statistics and hence they are charged lower rates.

Among the factors you can change, the first is geography. Your location and address can determine your insurance rates. A person who will drive his car in rural and sparsely populated areas will have a very low chance of an accident. On the other hand, a person living in the centre of the city amidst bustling traffic has a much greater chance of being involved in the accident. Therefore, if you are planning to shift your house, plan to move to a place with lesser traffic to reduce your rates. Areas with high crime rates also get high premiums and insurance rates.

The number of claims on your car will also determine insurance rates. Hence, it is best if any small dents are paid out of the pocket. A good credit score will also help you get a great rate. A good driving record is bound to et you a great rate as well.